The IRS has recently changed the limits for contribution for retirement savings accounts for 2025. Below are the new limits:
- Contribution limits for 401(k) and 403(b) and governmental 457 plans will increase by $500 to $23,500, up from $23,000 in 2024. There was no increase in the catch up contribution limit for taxpayers over 50 from 2024’s limit of $7,500.
- A new “Super Catch-Up” contribution was introduced for 2025 for tax payers from age 60-63. These tax payers can contribute an additional $11,250 instead of the $7500.
- The contribution limit for SIMPLE plans also increases by $500 in 2025 to $16,500.
The contribution limits for traditional or Roth IRAs did not increase and remain at $7000. The IRA catch up contribution limit for taxpayers over 50 also remains at $1,000, as it was in 2024.
As a reminder, the SECURE 2.0 Act raised the age that you must begin taking RMDs to age 73. If you reached age 72 in 2023, the required beginning date for your first RMD is April 1, 2025, for 2024. The age will increase again to age 75 in 2033.
If you have any questions about these limit changes or need someone to prepare your taxes for you, don’t hesitate to reach out to us!